Health-Check Time for China Funds

The mainland's asset management sector has grown explosively. One analyst says now's the time to step back and reassess for long-term growth

Joseph Luc Ngai

February 5, 2008, 12:24 PM EST

The recent implosion of global equity markets has had a rapid and pronounced effect on China's exuberant stock market. By the end of January, the benchmark Shanghai Composite Index was down nearly 30% from its all-time high of over 6100 last October. Despite this recent correction, however, the long-term prospects for China's equities market, and subsequently for its burgeoning asset management industry, still look quite promising. A recent study by McKinsey & Co. predicts China's asset management market will have more than $1 trillion in assets under management (AuM) between 2012 and 2015.

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